Dubai Land Department (DLD) has announced that private property owners in specific areas—Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf—can now convert their properties to freehold ownership. This move opens up opportunities for both local and international investors, as the permission to convert ownership is available to all nationalities.
Areas Eligible for Conversion
A total of 457 plots are eligible for this conversion:
- 128 plots along Sheikh Zayed Road
- 329 plots in Al Jaddaf
Steps to Convert Ownership
To initiate the conversion process, property owners must verify their eligibility through the Dubai REST app. Once eligibility is confirmed, they will need to submit an application to the DLD for the evaluation and valuation of their property. After assessing the common area fees and service charges, which are determined according to the Real Estate Regulatory Authority guidelines, a conversion fee of 30% of the property’s valuation (based on Gross Floor Area) will be charged.
Once the payment is processed, a map and freehold ownership title deed will be issued for the converted property, completing the ownership transfer.
Impact on the Real Estate Sector
This initiative is expected to increase the market value of properties in the Sheikh Zayed Road and Al Jaddaf areas. By allowing private property owners in these strategic locations to convert to freehold ownership, Dubai aims to spur significant growth in its real estate sector.
Eng. Marwan Ahmed bin Ghalita, Director General of the DLD, stated that the move would reinforce Dubai’s status as a global economic hub and a leading destination for real estate investment, supporting the goals of the Dubai Real Estate Strategy 2033.
New Smart Rental Index
In addition to the freehold conversion announcement, Dubai also unveiled a smart rental index that includes data on average rent, building quality, maintenance, and parking management. The index aims to make rental rates more transparent, with the potential for rent increases based on the building's rating. Landlords of older buildings can also raise rent following renovations or upgrades that improve the property’s rating.
Leasehold vs. Freehold Ownership
Understanding the difference between leasehold and freehold ownership is important. Leasehold allows for property ownership for a fixed term (up to 99 years) but does not grant ownership of the land. Freehold ownership, on the other hand, provides complete ownership of both the property and the land it is built on. This gives owners the flexibility to sell, lease, or occupy the property as they wish. While the initial cost of leasehold properties may be lower, freehold properties offer more control and fewer restrictions on their use.
